Which Subjects are Eligible for Regional Allowance for Social Insurance Beneficiaries? How to Calculate the Lump-Sum Allowance with the Regional Allowance Coefficient?
Which subjects are eligible for regional allowances for social insurance beneficiaries?
The subjects eligible for regional allowances for social insurance beneficiaries according to Clause 1, Article 21 of Decree 115/2015/ND-CP are as follows:
Regional Allowances for Social Insurance Beneficiaries
1. Eligible Subjects
a) Employees who have stopped working and are eligible for a pension or one-time social insurance benefit or who have died from January 1, 2016 onwards, but had periods of paying social insurance contributions including regional allowances before January 1, 2007;
b) Those receiving pensions, invalidity allowances, labor accident allowances, or occupational disease allowances on a monthly basis before January 1, 2016, who are receiving regional allowances at their registered permanent residence where regional allowances are applicable.
Therefore, employees who have stopped working and are eligible for a pension or one-time social insurance benefit or who have died from January 1, 2016 onwards but had periods of paying social insurance contributions including regional allowances before January 1, 2007;
- Those receiving pensions, invalidity allowances, labor accident allowances, or occupational disease allowances on a monthly basis before January 1, 2016, who are receiving regional allowances at their registered permanent residence where regional allowances are applicable.
Which subjects are eligible for regional allowances for social insurance beneficiaries? How to calculate one-time allowances with regional allowance coefficients?
What are the regulations on the regional allowance regime for social insurance beneficiaries?
The regional allowance regime for social insurance beneficiaries according to Clause 2, Article 21 of Decree 115/2015/ND-CP is as follows:
- Employees who have stopped working and are eligible for a pension or one-time social insurance benefit from January 1, 2016 onwards, but had periods of paying social insurance contributions including regional allowances:
In addition to receiving pensions or one-time social insurance benefits as prescribed, they are also entitled to a one-time allowance corresponding to the period and amount of regional allowance contributions paid to social insurance.
Family members of employees who have periods of paying social insurance contributions including regional allowances but have not received pensions or one-time social insurance benefits and have died from January 1, 2016 onwards are entitled, in addition to the survivor's allowance as prescribed, to a one-time allowance corresponding to the period and amount of regional allowance contributions paid to social insurance.
- Those receiving pensions, invalidity allowances, labor accident allowances, or occupational disease allowances on a monthly basis before January 1, 2016, residing in places with regional allowances, shall:
Continue receiving regional allowances at the current rate (not adjusted according to statutory pay rate) until a new regulation is issued by the Government of Vietnam.
Those receiving pensions, invalidity allowances, labor accident allowances, or occupational disease allowances on a monthly basis before January 1, 2016, and receiving regional allowances at their registered permanent residence but change their residence from January 1, 2016 onwards to locations with regional allowances, shall:
Receive regional allowances according to the rate applicable at their new residence. If the new residence has no regional allowances, they will no longer receive regional allowances.
Those receiving pensions, invalidity allowances, labor accident allowances, or occupational disease allowances on a monthly basis before January 1, 2016, residing in places without regional allowances and not receiving regional allowances, and then changing their residence from January 1, 2016 onwards to places with regional allowances, shall also not receive regional allowances.
How to calculate one-time allowances with regional allowances for social insurance beneficiaries?
The method of calculating one-time allowances with regional allowances for social insurance beneficiaries, according to Clause 3, Article 21 of Decree 115/2015/ND-CP, is as follows:
For cases specified at Point a, Clause 2, Article 21 of Decree 115/2015/ND-CP, the one-time allowance is calculated based on the period, contribution rate to the retirement and survivorship fund, regional allowance coefficient, and the statutory pay rate at the time of settlement. The regional allowance coefficient is determined as follows:
- For periods of paying social insurance contributions from January 1, 1995 to December 31, 2006, the regional allowance coefficient for one-time allowance calculation is the actual coefficient paid into the social insurance fund;
- For working periods before January 1, 1995, the regional allowance coefficient is calculated according to the regional allowance coefficients of localities and units as prescribed by law on regional allowances;
- For working periods at battlefields B, C before April 30, 1975, and battlefield K before August 31, 1989, the regional allowance coefficient of 0.7 is applied for one-time allowance calculation.
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